Week 2 Discussion 1,2 - Describe the items they have listed

Account 

week2acc

Discussion Question One:

This week we are studying liabilities and how we account for them. Pick a large NYSE or Nasdaq company that you know something about or do business with. (Do not use Amazon). Go to their website, under Investor Relations find their latest annual report.

· Describe the items they have listed in the Balance Sheet as liabilities.

· Distinguish between how short-term and long-term debt obligations are reported in a company’s financial statements and give the dollar totals of each.

· Search the Notes to the financial statements to determine what they discuss about their liabilities. What additional details do they give that are not in the financial statements?

· Where else might you find information about the company debt in the annual report and what would it tell you?

· From what you learned so far about their liabilities, how do you evaluate the company?

Discussion Question Two:

Sometimes the value spent by a corporation is recorded as an asset and sometimes as an expense. Find appropriate professional research to answer the following:

· Define the two terms. How and why are these expenditures different from each other?

· How are they different from Liabilities?

· Describe the effects of assets and expenses on the company’s financial statements.

· In ACC1001 you studied about Current Assets. How do they affect the financial statements differently from fixed assets?

· Comment on the statement that “all assets are eventually expenses”

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Doing_Discussion_Questions_Right.pdf